New Issue: Extra Space sells upsized $450 million 2.55% 10-year notes at Treasuries plus 98 bps

By Cristal Cody

Chicago, May 5 – Extra Space Storage LP sold an upsized $450 million offering of 2.55% 10-year senior notes (Baa2/BBB) at 99.849 to yield 2.567% on Wednesday, according to an FWP filing with the Securities and Exchange Commission.

The notes priced with a Treasuries plus 98 basis points spread, low to spread talk in the 130 bps area, according to a market source.

The deal launched at $300 million.

The notes feature a make-whole call with a Treasuries plus 15 bps premium until March 1, 2031 then a par call.

J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners.

The notes are guaranteed by Extra Space Storage, Inc., ESS Holdings Business Trust I and ESS Holdings Business Trust II.

Proceeds will be used for potential acquisitions, to repay debt under the company’s lines of credit and for other general corporate and working capital purposes.

The retirement savings, investment and insurance products company is based in Des Moines.

Issuer:	Extra Space Storage LP
Guarantors:	Extra Space Storage, Inc., ESS Holdings Business Trust I and ESS Holdings Business Trust II
Issue:	Senior notes
Amount:	$450 million
Maturity:	June 1, 2031
Bookrunners:	J.P. Morgan Securities LLC, BofA Securities Inc., Citigroup Global Markets Inc., PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC
Co-managers:	BBVA Securities Inc., BMO Capital Markets Corp., BNP Paribas Securities Corp., BOK Financial Securities, Inc., Fifth Third Securities, Inc., Morgan Stanley & Co. LLC, Regions Securities LLC, Samuel A. Ramirez & Co., Inc. and Truist Securities, Inc.
Coupon:	2.55%
Price:	99.849
Yield:	2.567%
Spread:	Treasuries plus 98 bps
Call features:	Make-whole call at Treasuries plus 15 bps until March 1, 2031; thereafter at par
Trade date:	May 5
Settlement date:	May 11
Ratings:	Moody’s: Baa2
	S&P: BBB
Distribution:	SEC registered
Price talk:	$300 million at Treasuries plus 130 bps area

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